Saturday, August 23, 2008

moving a house note to a credit card

Sometimes you can get enough mailings of the credit card check offers to move a legitimate loan (i.e., for an appreciating asset, e.g., a house) to a place normally not legitimate, i.e., a credit card.

This one from Capital One is a good example.

To thank you for your loyalty as our customer, we’re offering you a special transfer rate. When you transfer balances to your Capital One® account, you’ll enjoy this great 6.99% APR to start with until July 29, 2009. And then your rate actually falls to an even lower fixed 4.99%.

More good news is that you won’t pay a penny of transaction fees with this offer. That’s right—no transaction fee with this offer.

Note that there is no transaction fee with most offers from Capital One. This makes an incredible deal, a refinancing without a refinancing fee.

As long as you make the minimum payment each month (and you should put this kind of payment on AUTOPAY, so you never miss it when you happen to be traveling, etc.), this loan is great. If your current car note or house note is at 7% or higher, you may want to consider this deal. You have to earn a good credit rating to get this kind of offer, and get your credit limit on the card up pretty high to make it worthwhile, but dropping 2% after one year (without refinance charges) is way cool!

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